2026 Tax Policy Updates

Basic personal amount
(line 30000) – The maximum amount has increased to $16,129.

Age amount
(line 30100) – The maximum amount has increased to $9,028.

Canada Groceries and Essentials Benefit (CGEB)

The CGEB has now been is set to replace and expand the old GST/HST credit in 2026.

A one-time payment equal to 50 % of your annual 2025–26 GST/HST credit will be issued as early as possible in spring 2026 and no later than June 2026.

Beginning July 2026, quarterly payments will be increased by 25 % compared with the old GST/HST credit for five years (through to 2031).

To receive payments:

• File your 2024 tax return → qualify for the one-time top-up
• File your 2025 tax return → qualify for the enhanced quarterly benefit starting July 2026

Home Buyers’ Plan withdrawals

• Maximum withdrawal:$60,000
• Must repay over 15 years
• Repayments start the 5th year after withdrawal (temporary relief rule introduced in 2024)

FHSA (First Home Savings Account)

• Annual contribution limit: $8,000
• Lifetime maximum: $40,000
• Unused annual room carries forward (max $8,000 carry-forward per year)
• Contributions are tax-deductible
• Qualified withdrawals are tax-free
• Must close account by: 15 years after opening, OR end of year you turn 71

Schedule 3, Capital Gains or Losses
The following line(s) have been added:

15200 Proceeds of disposition of crypto-assets

You must now report the total proceeds from all crypto dispositions separately.

• Selling crypto for cash
• Trading crypto for another crypto
• Using crypto to buy goods/services
• Gifting crypto (deemed disposition)
• Converting crypto to stablecoins

15301 Gain or loss from disposition of crypto-assets

19890 Capital gains at 100%

The following line(s) have been updated:

• 15199 Proceeds of disposition of bonds, debentures, promissory notes, and other similar properties
• 15300 Gain or loss from disposition of bonds, debentures, promissory notes, and other similar properties 

Fertility treatment tax credit (Ontario）

A new refundable tax credit for fertility treatment came into effect on January 1, 2025.

25% of eligible expenses up to $20,000 (maximum $5,000 credit).

 

Form T2017, Summary of Reserves on Dispositions of Capital Property

Added: 66930 Amount of 2023 reserve for dispositions of property under a QBT (other than QFFP and QSBCS)

The following line(s) have been deleted:

• 66815 Amount of 2023 reserve for dispositions of QFFP to your child after 2014 and before April 21, 2015
• 66848   Amount of the most recent reserves claimed on line 66815

Ontario Seniors care at home tax credit 

Ontario residents who are 70 years of age or older or have a spouse or common-law partner who is 70 years of age or older can receive up to 25% of their claimable medical expenses, for a maximum credit of $1,500.

Multigenerational home renovation tax credit (MHRTC) (Schedule 12) – a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation.

A secondary unit:

• Is a self-contained housing unit with a private entrance, kitchen, bathroom and sleeping area
• Is newly constructed or created from an existing living space that did not already meet local requirements to be considered a secondary dwelling unit
• Meets applicable local requirements, permits, codes and by-laws

A qualifying individual is either:

• 65 years of age or older at the end of the renovation period tax year
• 18 to 64 years of age and eligible for the disability tax credit (DTC) at any time in the renovation period tax year

If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make.

Qualifying expenditure

Expenses that do not qualify

Goods acquired or services received, including work performed by professionals (such as electricians, plumbers, carpenters or architects) Outlays or expenses for permits Rental of equipment used in the course of the qualifying renovation building materials /fixtures equipment rentals building plans / permits

Annual, recurring or routine repair or maintenance Household appliances Electronic home-entertainment devices Housekeeping, security monitoring, gardening, outdoor maintenance or similar services Financing costs for the qualifying renovation Goods or services provided by a person not dealing at arm’s length with the individual unless that person is registered for GST/HST under the Excise Tax Act Reimbursed expenses Expenses without receipts Expenses that have already been claimed under the medical expense tax credit or home accessibility tax credit, or both